When a family member as Resident in Spain dies, the settlement of the estate proceeds according to the Spanish inheritance law procedure. For Belgian and Dutch heirs, this is often a complex and time-sensitive procedure, especially when there are Spanish property, bank accounts or debts are in play.
In this article, we explain the main steps when a Spanish resident dies. We also discuss the points of interest that are essential to personal liability for debts avoid.
1. Asset search: what belongs to the estate?
Settlement always starts with a thorough asset investigation. This involves identifying which assets and any debts are part of the estate.
In practice, it often involves:
- real estate in Spain
- Spanish bank accounts
- Belgian or other foreign bank accounts
- vehicles (e.g. a car)
- mortgages, loans or other registered debts
A complete and correct overview forms the basis for both the notarised if the tax handling of the estate.
2. Determining the heirs
It is then determined who is legally considered an heir. In many cases, these are the deceased's children, whether or not together with the surviving spouse.
This is an important step for:
- Preparation of the notarial estate deed
- Spanish inheritance tax declaration
- the subsequent registration or sale of Spanish property
3. The estate deed
When preparing the Spanish acceptance deed, there are two fundamental choices:
the procedure (with or without a will) and the method of acceptance (liability for debts).
A. With or without a will
- With will
If there is a valid Spanish or foreign will, the heirs designated in it can directly accept or reject the estate. - Without a will (ab intestato)
In this case, a Declaración de Herederos (deed of succession) be drawn up. This requires two witnesses.
After this deed, a statutory waiting period of 20 days applies, after which only the acceptance deed can be executed.
B. Mode of acceptance: watch your liability
When signing the deed, each heir must make a conscious choice:
- Pure acceptance
You accept both assets and debts.
If the debts exceed the assets, you are personally liable with your equity. - Acceptance under privilege of inventory (beneficio de inventario)
Your liability remains limited to the value of the estate. Your private assets remain protected.
Important: strict legal deadlines
Those who opt for acceptance under the privilege of estate planning must strictly observe the legal deadlines. If not, one is automatically deemed to have accepted purely, with all the risks involved.
Key deadlines:
- Request inventory: Within 30 days of knowing you are an heir (if you are already managing the assets).
- The so-called 1005 request: a creditor can compel you through the notary to decide within 30 calendar days. No response = pure acceptance.
- Inventory: start within 30 days of convocation and completion within 60 days.
An incomplete inventory or concealment of assets leads to loss of protection.
4. Spanish inheritance tax return
Following the acceptance deed, the Spanish inheritance tax stated.
For non-residents, a key issue here is that they are allowed to choose the regional tax regime. Indeed, in several Spanish regions there exist:
- significant exemptions
- major tax breaks for direct heirs and the surviving spouse
A correct regional declaration can therefore be a significant tax advantage deliver.
Read more about estate declaration in Spain.
5. Registration and possible sale of property
After filing the inheritance tax, the property can be registered in the Registro de la Propiedad (Spanish property register).
Only after this registration is a legally valid sale of the property possible.
Working with a notarised power of attorney: efficient and practical
For heirs not resident in Spain, working with a notarial proxy often the most efficient solution.
Capabilities:
- In Belgium with a Belgian notary (at the office or via videocall)
Target cost: ± €700 - In Spain at a Spanish notary
Target cost: ± €180 (all heirs must then be physically present)
With a power of attorney, we can, among other things:
- carry out all notarial and administrative steps
- declare inheritance tax
- property registration
- Applying for NIE numbers
- fully represent you in Spain
Read more about a notarised power of attorney or listen to our podcast episode.
Guidance for Spanish estates
Confianz accompanies Belgian and Dutch heirs in the full settlement of estates in Spain. We have extensive experience in international cases and work closely with Spanish, Belgian and Dutch notaries.
Do you have questions about a Spanish estate or would like an initial assessment of your case?
Feel free to make an appointment for a personal and expert explanation.
